Woolwich reduces rates on fixed rate mortgages
21st July 2008
Woolwich, the mortgage-lending brand of Barclays, has announced that it is cutting rates on its fixed rate mortgages by as much as 0.32 percentage points as lower SWAP rates continue to benefit the fixed rate market.
Woolwich's 10-year fix will fall below 6% to 5.97%, whilst its three-year fix drops by 0.20 percentage points to 6.29% and its five-year fix drops by 0.10 percentage points to 6.29%.
Woolwich said that it will also be introducing a Lifetime Tracker at 5.69%, tracking 0.69% above base rate for the life of the mortgage. All of these new products will be available direct or through brokers at exactly the same rates.
The new products will be offered on loan-to-values of 60% which according to Council of Mortgage Lenders data would mean they are available to 50% of the mortgage market. All new products will have an initial fee of GBP995. All other product rates will remain fully available and unchanged.
Andy Gray, head of mortgages for Woolwich, said: "We have seen an improvement in the SWAP rates recently and have taken the opportunity to reduce our longer term fixed rates where we see customers can get the best value at the moment. We have also decided to introduce a market leading Lifetime Tracker rate as we still feel this type of product offers the best value in the market at the moment, easily out stripping any two year fix."